India’s largest software exporter TCS on Thursday reported 2.1 per cent dip in net profit to Rs 6,446 crore for the September quarter on softness in banking and retail segments, but gave better guidance based on client optimism.
TCS said growth was led by Europe (up 5.3 per cent Q-o-Q), Latin America (up 5.7 per cent Q-o-Q), APAC (up 3 per cent Q-o-Q) and UK (up 2.5 per cent Q-o-Q). North America grew by 1.4 per cent Q-o-Q with continued softness in banking and retail.
The matter relates to a US grand jury order that slapped two Tata group companies, Tata Consultancy Services and Tata America International Corp, with a $940 million fine in a trade secret lawsuit filed against them by Epic in April 2016.
The $150 billion plus Indian IT industry faced with the prospect of a single digit growth rate in the range of 7-8 per cent for FY18.
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The company, however, posted a marginal increase of 1 per cent in its consolidated revenue at Rs 29,584 crore during the quarter as against Rs 29,305 crore in the year-ago period.
Retention was also not a concern, with TCS having one of the lowest attrition rates in the industry at 11.7 per cent, he said.
Chandrasekaran was succeeded by Rajesh Gopinathan, who was earlier serving as the CFO. Gopinathan took home Rs 6.22 crore during the fiscal.
The news came as Tata Consultancy Services Ltd, India’s biggest software services company, reported its results on Thursday
The operating profit was at Rs 7,733 crore in the reported quarter.
The board of country’s largest software company met at its office in downtown Mumbai Thursday morning, but the directors were tight-lipped about any decision.
The m-cap of TCS soared Rs 22,236.28 crore to reach Rs 4,98,528.12 crore, emerging as the biggest gainer among the top-10 firms.
TCS had reported net profit of Rs 3,713 crore in the same period of last fiscal as per IGAAP accounting norms.
The Mumbai-based firm said it remains committed to protecting IP as well as its reputation and financial interests fully.
According to TCS, constant currency revenue growth was 0.5 per cent on a Q-o-Q basis and the international business CC revenue growth at 1.1 per cent.